Many might be hesitant in taking a step into the world of digital and virtual currency. But as it is with all things, cryptocurrency has several pros and cons.
Hence, we shall lay out some of the advantages and disadvantages that come along with the use of cryptocurrency. From privacy to malware attacks; we shall take a look into the world of some of the most disruptive innovations ever.
Table of Contents
Pros of using Cryptocurrency
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Transparency
Although the process of transacting cryptocurrency is anonymous over the internet, all activity is stored in an online ledger known as the blockchain. The blockchain remains as a permanent source for information.
This transparency is often appreciated by most enthusiasts in the cryptocurrency community. This is because of the scepticism surrounding the legibility of virtual money as a form of currency.
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Accessibility
One of the most useful advantages of cryptocurrency is the fact that it can be accessed from anywhere. Unlike the use of physical currency, that comes along with several obligations and parameters.
The use for cryptocurrency for payments can be done with the touch of one’s smart phone. This allows for the access of money around the clock.
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Efficiency
The use of cryptocurrency for various transactions means spending less money on transactions. Certain cryptocurrencies allow you to make payments to individuals across the globe at the price of a fraction of a dollar.
Similarly, while using cryptocurrencies, the process of sending and receiving money becomes faster. This comes in handy when making transactions internationally. For good efficiency, visit apppicker.com
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Security
Over the years, several questions have been raised on the topic of how secure is the use of cryptocurrency. In fact, using virtual currency has proven to be safer.
The cryptocurrency consists of a blockchain, this blockchain is made up of mathematical equations and algorithms that make it hard to get into without a private key. Apart from that, that use of pseudonyms also ensures the prevention of malware attacks.
Cons of using Cryptocurrency
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Comprehension
As the world is taking steps towards the modernisation of the world, so is everything else. The same goes for cryptocurrency, many individuals stay vary of this form of currency simply because they are unable to make sense of it.
This reason has led to several people clinging onto the more traditional form of transactions. Due to this disadvantage, many are unable to reap the sweet benefits of cryptocurrency.
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Risk factor
Although the long term investment in cryptocurrencies can be very gratifying, it is a game of high risk. The market for these virtual currencies is highly volatile.
Although several currencies have shown great examples of steady profits, this still does not change the fact that there could be an instant change in the market price.
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Anonymity
Complete anonymity is a luxury only a few can afford. The same goes for the use of cryptocurrency. Now while that is one issue with it, the other is the use of cryptocurrencies to fuel criminal activity.
Tether is one of the best cryptocurrencies in use currently and is well-received due to its complete anonymity features. But the cryptocurrency has recently received backlash for being used for crime.
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Environmental effects
Mining is the process of introducing new tokens into the market for trade and transaction. This process is often labour-intensive and has serious repercussions on the environment.
One of the biggest contributors to this problem is bitcoin. Mining takes up enormous amounts of electricity and computer power. Hence, the process is harmful to the Earth.
Final Words
Here we present some of the basic pros and cons of using cryptocurrency for your perusal. Although this is only the tip of the iceberg, the topic of cryptocurrencies can be debated for hours.
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